Other Business Loans

For businesses that have not been able to obtain the desired level of capital to grow and expand, Lone Star works with an affiliate organization ( Houston Business Development, Inc.) to offer affordable small business loans structured to meet your specific needs. Loans up to $350,000 for working capital, furniture & fixtures, equipment and real estate are available for eligible businesses.

Eligibility

Must be a legally established for profit or non-profit business located in Houston
Sound financial position and reasonable personal support for the project
Reasonable assurance of repayment, based on past and projected earnings
Satisfactory credit history and personal character
Must be able to meet job creation goals of one (1) job created per $35,000 borrowed
Certain types of businesses, e.g., adult entertainment, selling alcoholic beverages, etc.,
are ineligible to participate in the loan programs.

Terms & Conditions

Fixed, below-market rates as low as 5% determined on a case-by-case basis
Loan proceeds can be used for working capital, furniture and fixtures, equipment and real estate
Terms are available up to 25 years based on the useful life of the asset
$75 Direct Loan Application Fee and $250 Tandem Loan Application Fee; 1% origination fee
No prepayment penalties

Other Program Features

Must have sufficient collateral (unencumbered, tangible assets) to secure the proposed loan
Participating commercial lender required to match loans larger than $350,000
Principals having 20% or more ownership are required to personally guarantee the loan
Start-up businesses and/or companies that have no reported earnings must submit a detailed business plan with projections and underlying assumptions
Borrower has two years from funding to create the required jobs.

Application

To Learn more about the available Small Business loans, please visit the HBDi website at www.hbdi.org or contact a loan officer at (713) 845-2400.